Fair Isaac Corporation (FICO)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	747,663	712,534	700,680	663,219	649,170	618,351	575,634	563,964	540,276	522,282	580,577	532,648	513,234	483,643	373,164	345,115	299,177	283,657	284,391	260,655
Long-term debt	US$ in thousands	2,194,020	2,104,940	2,028,650	1,808,660	1,811,660	527,500	531,300	535,000	1,823,670	542,500	381,300	—	1,009,020	—	—	—	739,435	—	—	—
Total stockholders’ equity	US$ in thousands	-962,679	-829,306	-735,660	-725,765	-687,990	-703,976	-770,793	-802,095	-801,947	-847,472	-663,416	-538,299	-110,942	124,838	223,303	324,121	331,082	247,286	214,151	240,961
Return on total capital		60.72%	55.86%	54.19%	61.24%	57.77%	—	—	—	52.88%	—	—	—	57.15%	387.42%	167.11%	106.48%	27.95%	114.71%	132.80%	108.17%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $747,663K ÷ ($2,194,020K + $-962,679K)
= 60.72%

The return on total capital for Fair Isaac Corporation has shown fluctuations over the past few quarters. In the most recent period, as of September 30, 2024, the return on total capital was 60.72%, indicating that the company generated $0.6072 in earnings for every dollar of total capital employed.

Comparing this to previous quarters, we observe a generally strong performance, with returns ranging from 54.19% to 61.24% in the last year. Notable spikes were seen in March 2021 (387.42%) and June 2021 (167.11%), indicating exceptional profitability during those periods.

It is important to note that there are some gaps in the data, where return on total capital figures are not provided. These gaps make it challenging to track the consistency of performance throughout the entire period under review.

Overall, the return on total capital trend suggests that Fair Isaac Corporation has been effectively utilizing its capital to generate profits, with some periods of exceptional performance. Continued monitoring of this ratio will be essential to assess the company's financial health and efficiency in capital allocation.